Reliance Power petitions for diversion of Tilaiya coal to Chitrangi plant

As conjectured by us earlier, the union coal ministry`s apparent miscalculation of coal reserves at the Tilaiya UMPP-associated coal blocks, in the pre-allocation stage, has led Reliance Power to commence another round of petitions for the diversion of surplus coal from the blocks to its power plants located in Chitrangi and elsewhere. In a recent missive, the power major has asserted that the Kerandari B and C coal blocks, allocatted specifically for the 4,000 MW Tilaiya UMPP in Jharkhand, can be expected to produce 40 million tonnes per annum (MTPA), whereas a UMPP requires around 18.8 MTPA of coal, at max.

Pertinently, the Kerandari blocks, with an estimated geological reserve (GR) of 972 MT, were allocated to Jharkhand Integrated Power Limited, a special purpose vehicle (SPV) floated by Power Finance Corporation (PFC) for the preliminary development activities at the Tilaiya UMPP, to meet the fuel needs of the project. Our readers would recall that Reliance Power also lodged a similar petition earlier, as the Moher, Moher Amlori Extension and Chhatrasal coal blocks, allocated for its 3,960 MW Sasan UMPP in Madhya Pradesh, were also found to have excess reserves. Accordingly, after much deliberation on the issue, the coal ministry, under a special dispensation, approved the company`s request for diversion of the surplus coal to the Chitrangi plant, which will receive 9 MTPA. The dispensation allowed to Reliance Power was a marked departure from existing norms, given the fact that any surplus coal generated from such blocks, currently, remains under the control of Central Government, which can then dispose off the same through the public sector coal major-- Coal India Limited.